Religiosity and Entrepreneurial Intention

Abstract

Religion and economic activities relationship is an evolving research topic in economics. Secular world-view usually put a side religiosity as just one of non-economic factors. However, religiosity is an important individual characteristic that has significant influence in shaping daily life decisions. Entrepreneurial intentions among undergraduates students need deeper study in order to reveal entrepreneurial intention formation model, intention determinant variables, how those variables interact each other, and how individual religiosity affect intention formation process and intention strength level. Based on Structural Equation Model, personal attitudes and social norms are the most important variables influencing entrepreneurial intentions, besides perceived behavioral control. These three variables are the most important entrepreneurial intentions determinant variable that direcly are influenced by personal beliefs about these factors. Religiosity plays an important role in entrepreneurial intention. Empirical test show that religious student group has stronger personal attitude towards entrepreneurial activity dan perceived behavior control compared to irreligious group.DOI: 10.15408/etk.v16i2.4963

Religiosity and Entrepreneurial Intentions in Nigeria

“…Thus as seen in the Western economy in which religion was responsible in forming the basis for the rise of Capitalism (Weber, 1922), business could be rightly said to be a religiously valued endeavor. The likelihood of being religious have a stronger influence on people, especially on personal attitude towards entrepreneurial activity, compared to the irreligious group of people (Wibowo, 2017).…”

“…Accordingly, religious people are discouraged from engaging in activities such as non-payment of debt, hence treating these activities as sinful. Hence, they have a stronger personal attitude towards entrepreneurial activity than perceived behavior control compared to irreligious group (Wibowo, 2017).…”

“…The factors are personal attitude (a subjective assessment of an individual over a behavior), social norms (a person's perception that there is social pressure over performing a behavior or most likely the probability of people considered significant by an individual to approve, support or reject an activity) and perceived behavior control or perceived self-efficacy (the perception of the level of difficulty to perform or to realize an intended activities). In essence, behavior that appears systematically is viewed not to have come from the impulsive and spontaneous decisions, but it has gone through the following step of planning, establishment, and strengthening of individual intentions and mental readiness (Wibowo, 2017). During the intention formation process, the individual's beliefs (religion) are usually responsible for shaping the intention.…”

“…), influences entrepreneurial intentions of students in Algeria positively. Furthermore, Wibowo (2017) examined the relationship between Religiosity and Entrepreneurial Intention in Indonesia with the use of the sample of 412 undergraduate students of the Faculty of Economics and Business, University of Indonesia. From the empirical result obtained using the technique of Structure Equation Modelling (SEM), the study revealed that, through personal behavior, social norms, and perceived selfefficacy were found to be the major determinants of entrepreneurial intentions, group of students that are religious has stronger personal attitude towards entrepreneurial activity than perceived self-efficacy compared to the irreligious group, because personal beliefs as well influence the variables that influenced entrepreneurial intentions about them.…”

“…Although the empirical study of Abdullahi et al (2017) incorporated the influence of religion in its model, the influence of religion in the model was not treated as in Riaz et al (2016), but most likely as a control variable. Similarly, employing the use of samples from those that are currently engaged in entrepreneurial activities (Kyire et al, 2016), the use of samples from final year students (Riaz et al, 2016;Abdullahi et al, 2017;Kothari, 2013) and undergraduate students (Mohammed et al, 2017;Wibowo, 2017) which make up most of the studies is likely to give misleading result and wrong representation of entrepreneurial intentions. Hence, this study will obviously examine the influence of religiosity on entrepreneurial intentions in Nigeria, and bridge the research gaps from previous studies by employing the use of samples from recent graduates of economics and business and those on the one year compulsory service (NYSC) to model entrepreneurial intentions as they are out of school recently and are likely to have entrepreneurial intentions obviously.…”